Fidus Investment (NASDAQ:FDUS) Cut to Hold at Keefe, Bruyette & Woods

Key Points

• Fidus Investment was downgraded by Keefe, Bruyette & Woods from “moderate buy” to “hold,” while Weiss Ratings also reiterated a hold rating. The stock now carries a consensus “Moderate Buy” from analysts, with an average price target of $21.00.
• Shares fell 3.4% after the downgrade, with FDUS opening at $19.66. The company’s market cap is about $746.1 million, and the stock has traded between $16.86 and $22.09 over the past 12 months.
• Recent earnings were mixed: Fidus Investment reported EPS of $0.62, beating estimates of $0.50, but revenue came in below expectations at $37.76 million versus $42.30 million forecast. Analysts expect full-year EPS of 2.15.

Fidus Investment (NASDAQ:FDUS - Get Free Report) was downgraded by analysts at Keefe, Bruyette & Woods from a "moderate buy" rating to a "hold" rating in a research note issued to investors on Sunday,Zacks.com reports.

Separately, Weiss Ratings restated a "hold (c)" rating on shares of Fidus Investment in a research note on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Fidus Investment presently has a consensus rating of "Moderate Buy" and an average price target of $21.00.

Fidus Investment Trading Down 3.4%

FDUS stock opened at $19.66 on Friday. The business's fifty day moving average price is $18.99 and its 200 day moving average price is $18.75. Fidus Investment has a 12-month low of $16.86 and a 12-month high of $22.09. The company has a market capitalization of $746.10 million, a PE ratio of 8.62 and a beta of 0.67.

Fidus Investment (NASDAQ:FDUS - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The asset manager reported $0.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.12. Fidus Investment had a net margin of 49.51% and a return on equity of 11.19%. The company had revenue of $37.76 million for the quarter, compared to analyst estimates of $42.30 million. Research analysts predict that Fidus Investment will post 2.15 EPS for the current fiscal year.

Institutional Investors Weigh In On Fidus Investment

A number of hedge funds and other institutional investors have recently modified their holdings of FDUS. Cetera Investment Advisers increased its stake in Fidus Investment by 3.6% in the 1st quarter. Cetera Investment Advisers now owns 542,315 shares of the asset manager's stock valued at $9,447,000 after purchasing an additional 18,656 shares in the last quarter. Columbus Macro LLC raised its stake in shares of Fidus Investment by 4.1% during the 1st quarter. Columbus Macro LLC now owns 505,567 shares of the asset manager's stock worth $8,807,000 after buying an additional 19,787 shares during the last quarter. Invesco Ltd. boosted its position in shares of Fidus Investment by 11.5% in the 3rd quarter. Invesco Ltd. now owns 497,921 shares of the asset manager's stock worth $10,088,000 after buying an additional 51,218 shares in the last quarter. UBS Group AG grew its stake in Fidus Investment by 17.1% in the 4th quarter. UBS Group AG now owns 439,945 shares of the asset manager's stock valued at $8,491,000 after acquiring an additional 64,209 shares during the last quarter. Finally, Muzinich & Co. Inc. grew its stake in Fidus Investment by 40.3% in the 4th quarter. Muzinich & Co. Inc. now owns 347,114 shares of the asset manager's stock valued at $6,699,000 after acquiring an additional 99,671 shares during the last quarter. 28.14% of the stock is currently owned by institutional investors and hedge funds.

Fidus Investment Company Profile

Fidus Investment Corporation NASDAQ: FDUS is a closed-end, externally managed business development company (BDC) that provides specialized financing solutions to U.S. middle-market companies. Operated by Fidus Investment Advisors, LLC, a registered investment adviser, the company is regulated under the Investment Company Act of 1940 and trades on the Nasdaq Capital Market.

The firm focuses on structuring senior secured and unitranche loans, mezzanine debt and equity investments for established businesses across a range of industries.

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